h the increasing complexity of European capital markets and the digital-first mindset of today’s investors, it is vital to find a partner who understands how to excel in this evolving landscape.

In Germany - where we work with Australian, North American and UK companies to engage with European retail and sophisticated investor - the competition for investor dollars is the strongest it has ever been.
Excellence, connections, and on-ground expertise are essential.

We collaborate with Tier-1 German and European Investor Relations professionals and Roadshow providers and content creators to help ensure your European IR strategy is a success.

The New Era of Investor Relations

The digital revolution has reshaped how companies and investors interact.

Companies need to engage in real-time dialogue through webcasts, live chats, and digital platforms. The competition for investor attention is fierce, and a successful IR strategy must be holistic in nature.

An effective IR program is not just about quarterly updates – it involves nurturing and cultivating long-term relationships that withstand the market’s difficulties. Trust and credibility derive through consistent, transparent communication.

Investors should know a company’s narrative and strategy, believe in the board and management, and want to stay for the journey.

Building a successful investor relations strategy

Companies should look to an investor relations firm that brings expertise, creativity, and a deep understanding of how to connect with today’s investor.

1. A Strategic thinking: An IR firm should craft and communicate a compelling narrative and partner as architects of a communication strategy, ensuring every message strengthens the brand.
2. Storytelling Excellence: Every company should have a powerful story—one that needs to resonate with diverse investor audiences across different geographic regions. An IR professional should assist in articulating this story with clarity and impact.
3. Digital Mastery: In the digital age, an impactful online presence is non-negotiable. From building a dynamic IR website to leveraging mobile-friendly tools, a digital strategy should be robust and investor-friendly.
4. Social media: Platforms like LinkedIn and X are essential for engaging with today’s investors. A partner should be able to harness these tools to amplify your message and build deeper connections.
5. Interactive Engagement: Investors appreciate direct interaction. Through webcasts, live Q&A sessions, and other virtual tools, companies should embrace opportunities to demonstrate their leadership and vision.
6. Authenticity and Transparency: Investors value honesty and transparency. An IR partner should address the right balance between showcasing strengths and openly addressing challenges.
7. Data-Driven Insights: Companies should embrace actionable feedback from the investor community. Listening and responding to investors will build trust and strengthen our strategic position.
8. Consistent Communication: Beyond quarterly updates, companies should provide regular, meaningful touchpoints to demonstrate they are proactive and engaged in the relationship.

The Right Partner Can Be a Game-Changer
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Here at Austlinx, we assist with our European partners to create a program to highlight a company’s strengths, establish trust, and engage with European retail, sophisticated and institutional investors.

We have compiled a list of some the most traded ASX companies in with a dual listing on Frankfurt and German exchanges for August 2024.

This list only includes buying on Frankfurt, Tradegate, Berlin, Stuttgart – and the main German trading exchanges.
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The table excludes EU Institutional buying as this will generally occur on home exchange where liquidity is better.

The standout performer is Droneshield (ASX: DRO) whose narrative has resonated very strongly with German and European investors.

Specialising in counterdrone technologies, Droneshield serves military, government, law enforcement, and critical infrastructure sectors.

The company’s solutions include radio frequency sensing, AI, machine learning, and electronic warfare. Its new radio frequency artificial intelligence (RFAI) technology offers improved drone detection by reducing false alarms and accurately tracking drones at a lower cost. Unlike current systems, DroneShield’s RFAI can detect drones at greater distances, even over water, enhancing performance while lowering costs.

DroneShield’s success has led to its technologies being included in Australia’s $20 million aid package to Ukraine, where they are used on the frontlines. The company also secured a $4.7 million order from a Swiss client for VIP protection and expanded its RFAI capabilities. 

Drone and defence tech continues to receive considerable newsflow here in Europe and we are also seeing other companies in this space engage strongly with EU investors.

Rare Earth stocks such as Lynas Rare Earths (ASX: LYC) are also of major interest for EU investors as imports account for almost 100% of the over 18,000 tonnes of rare eraths used each year in the EU.  

In 2022, China accounted for the largest share of rare earth element imports with 40%, was second at 31% and Russia was in third place with 25%.

In 2024 Lynas Rare Earths achieved significant milestones, including securing a variation to its Malaysian operating licence, allowing for continued cracking and leaching operations in Malaysia, and starting production at its new Kalgoorlie Rare Earths Processing Facility. The facility's construction and commissioning were completed in just over two years.

Lynas reported revenue of $463.3 million and a Net Profit After Tax (NPAT) of $84.5 million for FY24. NdPr production decreased by 8% due to the major works program in Malaysia,
 
The inclusion of nuclear energy in the EU taxonomy for sustainable activities is likely to boost uranium investment significantly. This, and global renewed interest in Uranium stocks, has likely contributed to strong trading from ASX uranium stocks such as Deep Yellow (DYL), Boss Energy (ASX: BOE) and Elevate Uranium (ASX: EL8).

The EU taxonomy is a framework that guides investment towards environmentally sustainable activities. By classifying nuclear energy as a sustainable technology, the EU acknowledges its role in reducing carbon emissions and providing a stable energy source, complementing renewable energy.

As a result of inclusion in the taxonomy, institutional investors and funds seeking to invest in sustainable energy projects are more likely to allocate capital to the nuclear sector. This, in turn, creates increased demand for uranium, the key fuel in nuclear reactors.

We are seeing strong engagement for quality ASX and TSX listed Uranium stocks from EU investors.

Biotech is back in 2024 with ASX company Clinuvel Pharmaceuticals (ASX: CUV) seeing solid volumes on Frankfurt and German trading exchanges. Clinuvel is a global speciality pharmaceutical group focused on developing and commercialising treatments for patients with a genetic, systemic, and life threatening acute disorders as well as healthcare solutions for specialised populations.

We are optimistic about continued demand for quality dual-listed ASX stocks on German exchanges.  An annual study by Deutsches Aktieninstitut as found that a total of 12.3 million German citizens save in stocks, stock funds and ETFs. That is over 17 percent of the population aged 14 and over - or just over one in six.

Despite rising interest rates and persistent inflation, major geopolitical tensions and weak economic growth prospects, German investors largely remained loyal to stock investments. That is a good result according to the Deutsches Aktieninstut.

The number of investors in funds and ETFs is around 10.3 million, which is the same as last year. Fund and ETF savings are the foundation of share saving. More than 80% percent of share portfolios contain funds or ETFs. The number of those who invest directly in shares, on the other hand, has decreased: only 4.7 million - 585,000 fewer than in 2022 - are invested in individual shares.  This is about 5.5% of the population. This is somewhat in line with Australia where about 7% of population have between $5,001 and $10,000 invested in shares and 6% more than $100,000.

 An annual study by Deutsches Aktieninstitut as found that a total of 12.3 million German citizens save in stocks, stock funds and ETFs. That is 17.6 percent of the population aged 14 and over - or just over one in six.
Compared to 2022, that represents a decrease of 570,000.

Despite rising interest rates and persistent inflation, major geopolitical tensions and weak economic growth prospects, savers largely remained loyal to stock investments. That is a good result according to the Deutsches Aktieninstut.

Funds and ETFs are an indispensable part of the share portfolio. Of the 12.3 million share savers, 7.6 million have only funds or ETFs in their portfolio. 2.0 million only invest in shares. 2.6 million savers combine both types of investment.

The number of investors in funds and ETFs is around 10.3 million, which is the same as last year. Fund and ETF savings are the foundation of share saving. More than 80 percent of share portfolios contain funds or ETFs. The number of those who invest directly in shares, on the other hand, has decreased: only 4.7 million - 585,000 fewer than in 2022 - are invested in individual shares.

Many savers remained loyal to stock investments. Loyalty to stocks - despite interest rate changes and turbulent times High inflation, as last seen in the 1970s, hit people with low incomes particularly hard and further limited their ability to save.

Due to rising interest rates, fixed-interest investments again competed more strongly with stocks, funds and exchange-traded funds (ETFs) and, together with the record high of the DAX at the end of the year, provided incentives for profit-taking and reallocation in the portfolio. Overnight and fixed-term deposits celebrated a comeback.

Against this background, the stable number of stock savers is a good result. The number of investors in equity funds and ETFs remained stable, while the number of shareholders fell in 2023.

The analysis shows that it was more men who liquidated their stock investments. Women, on the other hand, were just as involved in the stock market in 2023 as they were in 2022. Older investors remained invested. Younger investors withdrew somewhat. In the long-term trend, however, the positive attitude towards stocks among younger people remains intact

We have compiled a list of the ASX Uranium stocks seeing the highest volume on Frankfurt Stock Exchange, Tradegate, Berlin and the other primary German trading exchanges.




The top 5 Uranium traded stocks on German exchanges in August 2024 were:



​European investors are returning to the Uranium sector, driven by a combination of rising uranium prices, favourable changes in EU taxonomy laws for sustainable investment and sluggish outlook for the EU battery metals sector.

The global spot price of uranium is up 30% in 12 months to US$68.25 a pound. Although, some uncertainties have entered the market from when the spot price hit a high of US$81.30 in January this year. BMO Markets analyst, Alexander Pearce, noted 2024 could see the first significant growth in uranium supply in years as older projects catch with demand, however permitting delays, logistical issues and political interference could create delays.

In 2023 the EU accounted for approximately 23% of global uranium demand, which underscores European investor interest in the sector.

A significant factor behind investor enthusiasm is the re-emergence of nuclear power as a key player in the global energy transition. Nuclear energy produces no direct carbon emissions, and many countries are increasingly viewing it as a reliable source of low-carbon electricity.

France derives more than 70% of its electricity from nuclear energy and has stated it may need to build more than 14 new nuclear reactors – 6 more than currently planned - to meet the Country’s targets of reducing dependence on fossil fuels.

Another major driver for uranium investment is the inclusion of nuclear energy under the European Union’s sustainable finance taxonomy. In 2022, the EU officially recognized nuclear power as a “green” investment, classifying it as sustainable for energy transition purposes. This policy change opens the door for significant institutional investment, as funds seeking to meet Environmental, Social, and Governance (ESG) criteria can now invest in uranium and nuclear energy without being excluded from green portfolios. As ESG-focused funds grow, this regulatory shift could result in a flow of capital into uranium markets, further boosting stock prices.

Austlinx director, Matthew Reynolds, sees further demand for quality ASX Uranium and clean energy stocks from German and European investors.
  

​Northvolt has recently announced significant changes to its production strategy, which will impact key sites. As part of the new strategy, cathode material production at the Northvolt Ett plant in Skellefteå, Sweden, will be stopped although plans for cell production at the facility will proceed as scheduled.

In another move, the Northvolt Fem program in Borlänge, Sweden, which was intended to be a new production site for cathode materials, will also be discontinued. The Borlänge site, which was only acquired in 2022, is now set to be sold, marking a significant shift in the company's plans for its Swedish operations.

Meanwhile, Northvolt's largest battery system factory in Europe, Northvolt Dwa in Gdansk, Poland, remains a critical part of the company’s strategy. However, the company is actively seeking partners or investors to help finance its operations at the Polish site, indicating potential challenges in maintaining self-sufficient operations.

Adding to this, Volkswagen (VW), one of the largest car manufacturers in the world, recently revealed its decision to close a plant in Germany. The closure appears linked to decreased demand for combustion engine vehicles, ongoing cost pressures, and the global shift toward electric cars. These closures reflect mounting difficulties for European automakers as they navigate the transition to EVs, facing both technological challenges and stiff competition from foreign markets, particularly China.

According to Bloomberg news, nearly a third of large auto plants in Europe made fewer than half the vehicles they have the capacity to make. Car sales are nearly a fifth below pre-pandemic levels, and demand for EVs is lower than expected. That's leaving factories half-empty and looming structural problems for Europe where the auto industry accounts for over 7% of the EU’s GDP and more than 13 million jobs.

Meanwhile, Chinese automaker BYD (Build Your Dreams) is rapidly growing, selling over 3 million cars annually, compared to Tesla’s 1.8 million sales. BYD's success underscores China’s ascendance as the new epicentre of global car manufacturing, particularly in the EV sector. This increase is encouraged by strong government support, access to critical raw materials, and an extensive domestic supply chain that enables the production of affordable EVs at scale.

Chinese carmakers are rapidly growing their global footprints, with BYD planning plants in Thailand and Hungary, among other countries. The company is also buying its German distributor Hedin Electric, as it moves to scale up in Europe.

By 2030, Chinese carmakers could see their share of the global EV market double to a third, UBS has forecast, with European firms suffering the biggest loss of market share as a result.

The shift toward China as the world’s leading car manufacturing hub has profound implications for the global supply chain, especially for companies in the critical raw materials sector.
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With Northvolt and VW signalling supply issues and a retraction of Europe’s manufacturing base, critical raw materials companies may see greater opportunities in Asia. However, the geopolitical risks and supply chain vulnerabilities remain significant.

To thrive companies must navigate a rapidly shifting landscape, where China’s dominance in EV production is setting the pace for the global market. 

We continue to see strong investment in Europe in new battery technologies, substitution processing and materials and recycling technologies. 

InvestorHub is finally doing something we have long championed – making the Investor Relations function a value centre rather than a cost centre.

Founders, Ben Williamson and Rhys Davis transitioned “Fresh Equities” to a subscription model in 2022, focusing on software that enhances direct communication between companies and shareholders.

This pivot, discussed in a recent article in The Australian Financial Review (AFR, July 29,2024) allowed InvestorHub to sign over 120 clients from the ASX and LSE within a year. Their innovative platform, combining shareholder analytics and direct communication tools, addresses the crucial need for engaging mid-tier investors who significantly influence share prices.

InvestorHub is focused on what has been a neglected area in shareholder communications – providing deep intel to companies on their registry, shareholder location, and shareholder communications with the company.

The Company says on its website “Being listed should be superpower. Rasing capital in days, not months. Liquidity for stakeholders and incentives for the team”

As UK Managing Director, Alex Stella, notes “we have developed significant IP that allows listed companies to form direct relationships with their domestic and foreign investors. This uniquely empowers issuers to identify who their existing and prospective investors are and then provide them with detailed information and correspondence. The concept is simple but very effective - investors should receive a proper customer experience.”

One of the rationales for more effective shareholder communication is to build a strong relationship between an investor and the company they are investing in. An engaged and listened to investor is likely to be a longer-term investor.

Every investor interaction is measured, analysed and compiled into an engagement analytics dashboard and monthly report. This assists public companies track the impact of their investor marketing and determine return on investment.

The company’s expansion into the UK market and interest from North American exchanges reflect its global appeal. InvestorHub’s AI tool such as translation of investor communications into different languages such as German is proving popular for Companies with dual listing on Frankfurt Stock Exchange.

Some of the features on InvestorHub include an Intelligence Hub, Interactive Investor Hub, Communications Hub and a Raise Hub. 

We have long said investors are a key asset for listed companies and should be treated more like customers. InvestorHub’s features allow for Direct to Investor marketing to attract new investors and engage existing shareholders more effectively.

Investor Hub and similar SAAS (“Shareholder As A Service”) tools will play an increasingly important role in companies investor relations strategies.

Here in Germany the Frankfurt Stock Exchange and associated Germany exchanges are playing an increasingly important role in assisting Australian, Canadian and UK listed companies increase and diversify their global investor base.

Companies like Droneshield (ASX: DRO) are seeing very strong volumes on the two main German exchanges – Frankfurt and Tradegate. German retail investor interest in quality ASX and global listed companies with a compelling narrative, strong business case, and quality management will only continue to increase. 

We consider local knowledge, local media contacts and local investor and stakeholder networks are, and will continue to be, a vital components of developing and nurturing global investors – especially so in Europe.
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The optimal IR solution for companies looking to expand their European investor base may well be a collaboration and harmonisation of SAAS platforms such as InvestorHub and local organisations with specialised local knowledge, a deep well of contacts and media partners. 

​Exploring Grants and Subsidies in Europe.

Europe offers a broad spectrum of grants and subsidies aimed at fostering innovation, economic growth, and competitiveness across various sectors.

Among these, the European Innovation Council (EIC) Accelerator and the Critical Raw Materials Act (CRMA) strategic projects stand out as key initiatives designed to support high-potential companies and projects. These programs are crucial for driving Europe’s transition to a sustainable and competitive economy, particularly in the face of global challenges.

The EIC Accelerator: Fueling High-Risk, High-Gain Innovations
The EIC Accelerator is one of the flagship funding programs under the broader Horizon Europe framework, designed specifically to support small and medium-sized enterprises (SMEs) and start-ups with breakthrough innovations. This program is particularly targeted at deep-tech companies that have the potential to create new markets or disrupt existing ones.

Key Features of the EIC Accelerator:

1. Blended Financing: The EIC Accelerator offers a unique funding model that combines grants and equity investments. The grants can cover up to 70% of eligible costs, up to €2.5 million, for innovation activities such as demonstration, prototyping, and testing. Additionally, equity investments of up to €15 million are available to scale up innovations and bring them to market.
2. Tailored Business Acceleration Services: Beyond financial support, the EIC Accelerator provides tailored coaching, mentoring, and access to a wide network of investors, corporates, and peers. This holistic approach helps companies navigate the complex path from concept to commercialization.
3. Support for All Stages: The program supports innovations at different stages of development. Whether a company is in the early stages of developing a prototype or ready to scale its product, the EIC Accelerator can provide the necessary resources and guidance.

The EIC Accelerator is highly competitive, with applications evaluated based on their excellence, impact, and implementation strategy. The program particularly favors projects that align with the European Union’s strategic priorities, such as the Green Deal, digital transformation, and deep-tech innovation.

EU CRMA Strategic Project Applications: Securing Europe’s Supply of Critical Raw Materials
In a world increasingly dependent on advanced technologies, the supply of critical raw materials (CRMs) has become a strategic priority for the European Union. The Critical Raw Materials Act (CRMA) is part of the EU’s broader strategy to secure a sustainable and resilient supply of CRMs essential for key industries like renewable energy, electric vehicles, and digital technologies.

First Call for EU CRMA Strategic Projects:
The first call for strategic projects under the CRMA is a significant step toward achieving the EU’s goals of reducing dependency on non-EU countries for critical raw materials and strengthening its supply chains. The call opened on 22 May and closed on 22 August 2024.

These projects are expected to contribute to the exploration, extraction, processing, recycling, and substitution of CRMs within the EU.
Key Aspects of the CRMA Strategic Projects:

1. Funding Scope: The CRMA strategic projects will receive substantial funding from various EU programs, including Horizon Europe, the European Regional Development Fund (ERDF), and the Just Transition Fund (JTF). This funding aims to support large-scale projects that can have a substantial impact on securing the EU’s supply of CRMs.
2. Focus on Sustainability: The projects are expected to align with the EU’s sustainability goals, ensuring that the exploration, extraction, and processing of CRMs adhere to the highest environmental and social standards. This is crucial for maintaining public support and ensuring long-term viability.
3. Public-Private Partnerships: The CRMA encourages collaboration between public and private entities to leverage expertise, share risks, and mobilize additional investments. This collaborative approach is essential for addressing the complex challenges associated with CRM supply chains.

Conclusion
The EIC Accelerator and the first call for EU CRMA strategic projects represent critical components of the European Union’s strategy to drive innovation and secure the supply of essential resources.

While the EIC Accelerator supports groundbreaking innovations that can lead to new market opportunities, the CRMA strategic projects focus on ensuring that Europe has the necessary raw materials to sustain its technological and industrial base.

Both initiatives reflect the EU’s commitment to fostering a competitive, sustainable, and resilient economy in the face of global challenges.
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For companies and research institutions across Europe, these programs offer invaluable opportunities to secure funding, access new markets, and contribute to the EU’s strategic objectives. As the global landscape continues to evolve, such initiatives will play a pivotal role in shaping Europe’s future.
Contact Austlinx today to see how we can assist with grants and subsidies.

German Media engagement. Droneshield has successfully developed relationships with German stock media such as Der Aktionär and these assists develop German retail engagement.

Strong sales growth. The main reason for retail buying according to studies is the expectation of future cash flows – either in form of dividends or capital growth from sale of shares. Both require sales growth. Droneshield reported sales of A$24 million in H1 2024 – up from $A 11 million in H1 2023.

Ukraine war and reliance on drone technology. The war in Ukraine has been characterised by massive drone deployment, with thousands of unmanned aerial vehicles (UAVs) used to track and attack enemy forces, guide artillery and bomb targets. In Ukraine over 2,000 SMEs are working on drone technology. This is also feeding significant media interest in Germany and Europe.

Understanding the German equity markets. Due to the nature of German Stock Exchange regulations, there are very few small and mid-cap companies with a primary listing on Frankfurt. There were only a dozen primary German listings on Frankfurt Stock Exchange in last 2 years including Porshe. Most small and mid-cap companies in German are private or owned by venture capital. Therefore, retail investors wanting to invest in publicly traded small-mid cap companies (particularly in biotech, CRM, and tech sectors) are drawn to companies with a primary listing on ASX or TSX.

In these markets with low liquidity in the small and mid-cap market, companies should think about maximising their primary exchange listing and looking a dual listings such as Germany and Frankfurt Stock Exchange. 
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 The EU market is a huge market and opportunity for Australian companies.
 
There are 27 EU member states, containing a population of around 450 million people and a GDP of around € 16 trillion.
 
Each country has very specific, cultural and bureaucratic norms which can be complex and confusing.
 
Here in Germany, different regional ecosystems tend to specialise in different technical industries. There are 12 industry hubs in cities across Germany. Munich and Stuttgart metropolitan areas are known for high tech and automotive manufacturing. The Rhine-Neckar region is a centre of the chemicals and IT industry, and Frankfurt is the financial centre. High per­formance high-tech centres are developing rapidly in former East Germany, particularly the “lighthouse regions” of Dresden, Jena, Leipzig.
 
GTAI (Germany Trade and Invest) is an ideal contact for Australian companies looking to establish business operations in Germany.

Collaborations and partnerships are highly valued in Europe. The Fraunhofer-Gessellscaft is one of the world's leading applied research organisations and plays a crucial role in working with Industry in areas such as Artifical Intelligence, Quantum technologies, Resource efficiency and climate technologies.

Partnering with a German or EU research organisation such as Fraunhofer is a great way to build relationships, develop EU IP and be eligible for grants and subsidies in Europe.
 
There are 5 models for successfully scaling in Europe for Australian companies:

1. Global commodity strategic advantage such as resources like BHP and Fortescue but also smaller Australian resource companies that can assist Europe with goals of the EU Critical Raw Materials Act (CRMA).

2. Product Innovators - Australian companies with world-leading product or innovation capability such as CSL and ResMed. This also applies to small and mid cap companies such as those in the Hydrogen and clean energy sectors.

3. Business Model Pioneers - Australian companies developing innovative approaches to doing business that produces a competitive advantage. An example is Macquarie Infrastructure Fund.

4. Software Innovators - Australian software or tech companies that can expand rapidly by leveraging a scalable technology in a market segment that is specific and not over serviced by European companies. An example is EventsAir an events management software company.

5. Leveraging IP developed in Australia and collaborating with a German or EU company to develop and commercialise in EU. An example is Neometals (ASX: NMT) which developed Hydrometallurgical battery recycling capability in Australia and partnered with SMS Group in Germany to form a JV (Primobius) to develop and commercialise - resulting in agreements with Mercedes Benz.

We assist Australian and global companies refine, implement, adapt, and analyse their European strategy and make vital introductions with EU stakeholders and investors.